The UK and South Korea have formed a "fintech bridge" that will help financial technology firms and investors from each country gain access to the other.
The bridge sees the UK’s Financial Conduct Authority (FCA) and the Korean Financial Services Commission (FSC) ink a regulatory co-operation agreement on sharing information about financial services innovations in their respective markets, including emerging trends and regulatory issues.
Dominated by London and with significant government backing, the UK has long pushed itself as the fintech capital of the world, generating £6.6 billion in revenues last year and employing over 60,000 people. However, this status has been threatened in recent weeks by the Brexit vote.
Korea has a strong technology industry but, FSC chairman Yim Jong-yong admits, is a "relative newcomer to fintech" and is seeking to establish itself as a regional hub in a part of the world with strong centres such as Hong Kong and Singapore, with which the UK has also formed a fintech bridge.
By strengthening links between the regulators and governments, the UK-Korea bridge will reduce the barriers to entry in a new jurisdiction and further encourage innovation in both countries’ financial services sectors, says a statement. It will make it easier for fintech firms in the UK and the Republic of Korea to scale up internationally.
UK Chancellor of the Exchequer, Philip Hammond says: "The newly established FinTech bridge between the UK and the Republic of Korea is an important step for one of this country’s most exciting industries. The government is determined to help the UK FinTech sector to innovate and grow and to ensure that Britain remains the location of choice for FinTech start-ups."